East Costa del Sol property market

2024 Full Year

The East Costa del Sol property market in 2024 showed steady growth, driven by strong demand for new builds and continued interest from both local and international buyers. While overall sales rose slightly, there was a modest decline in sales within the core ECDS municipalities. Foreign buyer activity remained significant, although their market share dipped slightly. Price trends stayed positive, particularly for new properties, and construction levels reached a decade high. This report offers a concise overview of the region’s housing market in 2024, focusing on sales performance, pricing, mortgages, and development trends.

Sales performance

The East Costa del Sol (ECDS) is part of Malaga province where the data allows us to breakdown the market into segments such as local, foreign and new build sales, so first let’s look at sales in Malaga province before going onto sales in the municipalities of the ECDS (Rincón de la Victoria, Vélez-Málaga, Torrox and Nerja).

In Málaga province the housing market recorded a total of 37,790 home sales in 2024, showing a marginal increase of 7% year-on-year (Fig. 1-1). This figure was 15% higher than the ten-year average and represented an overall increase of 46% compared to a decade ago, reflecting sustained interest in the region’s property market.

Foreign buyers accounted for 14,475 sales—or 39% of all transactions—during the year (Fig. 1-2). This segment posted a 5% rise from 2023 and a strong 19% jump compared to the ten-year average. Over the past decade, foreign ownership has grown by 32%, underlining the area’s enduring appeal among international buyers. Within this group:

• 3,963 sales involved foreign residents (expats), representing a 3% year-on-year decline
• 10,512 were foreign non-residents (FNRs), who bought primarily for holiday use or investment, marking an increase of 8%

Sales by FNRs have grown 25% over the decade, while the expat segment surged by 55%, indicating a steady transition of some buyers from second-home ownership to residency.

Although foreign buyers maintained a large share of the market, their proportion declined slightly from 39.5% in 2023 to 38.8% in 2024 (Fig. 1-3), suggesting strong growth among domestic buyers as well.

New build sales in the area surged by 56% year-on-year, reaching 5,360 units (Fig. 1-4). This volume was more than double the ten-year average, reflecting a 116% gain, and up 36% compared to ten years ago. Strong demand for new units is driving construction activity in the region, particularly in more popular towns along the coast.

East Costa del Sol home sales

In ECDS municipalities specifically, 3,928 homes were sold during the year, showing a 10% decline from 2023 (Fig. 1-5). However, this figure was still 7% above the ten-year average and 39% higher than a decade ago, suggesting a longer-term upward trajectory despite the short-term dip.

House price trends in Malaga province

According to data from the Spanish Housing Ministry, the average sale price of homes in Malaga province during 2024 stood at €315,274 (Fig. 2-1), marking an 8% increase year-on-year. New builds sold at an average of €378,605, up 3%.

Price indices reflect even more pronounced long-term growth. Over the past ten years, the overall price index for the area rose from 100 to 183.8, an increase of 84%. For newly built homes, the index rose to 196.9, indicating a 97% increase over the same period (Fig. 2-2). This means that price appreciation has been significantly stronger in the new-build segment—by around 13 percentage points. This differential likely stems from higher construction costs, growing buyer preference for modern amenities, and energy efficiency concerns.

The five-year figures support this view, with all-property prices increasing by 84% and new homes by just 22%, suggesting that most of the value appreciation in the new-build segment occurred earlier in the decade.

Nerja case study

In the popular ECDS municipality of Nerja, the average asking price listed on Idealista was €3,400/m² during 2024 (Fig. 2-3), reflecting a 7% increase over the previous year and a 25% increase over five years. The ten-year index of asking prices moved from 100 to 152.1, indicating a 52% increase in advertised property values—a robust performance aligning with regional trends in demand.

Mortgage market

New mortgage lending in Malaga province totalled 16,333 contracts in 2024 (Fig. 3-1), a 17% decline compared to the previous year. This figure was 7% below the ten-year average but still represented a cumulative increase of 34% over the past decade, demonstrating a longer-term recovery despite recent constraint. Tighter lending conditions, higher interest rates, or reduced buyer demand for financing could explain the annual drop.

The average Euribor rate—used as a benchmark for most variable-rate mortgages in Spain—was 3.27% in 2024 (Fig. 3-2). This marked a significant decline from 2023’s peak of 3.86%, and a reversal from 2021’s historic low of -0.49%. The downward trend suggests softening monetary conditions, potentially in anticipation of interest rate cuts by the European Central Bank (ECB) in response to easing inflationary pressures and weaker economic growth forecasts across the eurozone.

Housing starts

There were 9,349 new housing starts in Malaga province based on planning approvals in the period (Fig. 4-1), up 29% compared to 2023. This figure was 55% higher than the ten-year average and more than four times higher than what was recorded ten years ago. Such a strong growth trajectory clearly reflects rising developer confidence, sustained demand for new housing, and solid investor appetite.

Summary

• Total sales in Malaga province rose 7% year-on-year; new builds up 56% while resales fell locally
• However, in the ECDS sales fell 10%
• Foreign buyers made up 39% of transactions; non-resident purchases outpaced expat activity
• Average prices in Malaga reached €315,000; new builds averaged €378,600
• Over 10 years, all property prices rose 84%, with new builds up 97%
• Asking prices in Nerja increased by 7% YoY and 52% over ten years
• 16,333 new mortgages were signed, 17% lower YoY, but the ten-year trend remains positive
• Euribor dropped to 3.27%, reflecting anticipated ECB rate changes
• Housing starts reached 9,349, a 29% YoY rise and a 405% increase from a decade ago

Conclusion

The East Costa del Sol housing market in 2024 reflected a complex but broadly positive picture. Foreign demand, especially from non-residents, remains strong despite a small drop in market share. New builds are taking an increasingly prominent role, both in terms of sales volume and pricing dynamics. Mortgage activity softened in 2024, but the long-term trend is still upward, and interest rates appear to be at a turning point. Developers are responding rapidly, with housing starts surging in line with market appetite.

All signs suggest the ECDS market is poised for continued growth, especially in the new-build sector, supported by continued foreign interest, favourable pricing trends, and likely monetary easing in 2025.

disclaimer

These reports are prepared in good faith using publicly available data. While efforts are made to ensure accuracy, no guarantees are provided regarding the completeness, reliability, or suitability of the information for any purpose. Use of this information is at your own risk.